Should I Declare Kansas City Bankruptcy or Use a Debt Negotiation Service?

99% of the time you should declare Kansas City bankruptcy instead of use a debt negotiation service. Many of my clients saw ads for debt negotiation companies and considered using them instead of declaring bankruptcy. The problem is that these services have several problems that make them undesireable.

  1. You make hefty initial payments as part of your debt restructuring plan. This money goes to the debt negotiation company and not to creditors.
  2. These businesses cannot defend you in court if an unsatisfied creditor decides to sue you.
  3. Most of the time bankruptcy is better for your credit than debt negotiation.
  4. Many out of state debt negotiation companies have been caught for fraud. They charge fees and don’t provide much debt relief. Many of these companies are under investigation.
  5. You make hefty initial payments as part of your debt restructuring plan. This money goes to the debt negotiation company and not to creditors.

On rare occasion I would say it is acceptable to use a debt negotiation service if you meet the following criteria:

  1. Can make monthly payments on debt
  2. Have little unsecured debt (medical bills, loans, credit cards)
  3. Have assets that could be seized in bankruptcy
  4. Use a local company

Bankruptcy is a better option than debt negotiation in most cases. Before you pursue debt negotiation, please speak with their past clients and a bankruptcy attorney.